LIVERPOOL'S Capital of Culture award has given a major boost to support services company Enterprise, chairman Owen McLaughlin reported yesterday.

The long-term partnership with the city council - Enterprise Liverpool - is being hailed as the group's flagship as it seeks contracts with other local authorities.

Mr McLaughlin said: "Enterprise Liverpool continues to expand and the company is exploring further opportunities to increase the scale of the business relationship with Liverpool, opportunities which have significantly increased with the award to Liverpool of European Capital of Culture status in 2008.

"We believe that the performance of Liverpool City Council in dramatically improving services to its residents, whilst reducing the real burden of its community charge, will serve as an example to other local authorities and has already provided significant opportunities for Enterprise."

The innovative venture with the city council has contributed to an 11pc increase in first-half profits for Enterprise.

The company has a long-term contract with the city council to look after high-ways and highways maintenance, and has now signed a #70m 10-year street cleaning contract.

Mr McLaughlin says Enterprise aims to boost its activity in the public sector markets, supplying streetcare and housing maintenance.

Enterprise's work with Liverpool City Council and other public sector bodies accounts for around a third of the group's turnover.

Mr McLaughlin says this sector represents a vast market opportunity.

"As with utilities, profitability is directly correlated with client maturity. In this light it is encouraging to note that local authorities are moving towards long term partnering arrangements under the 'best value' as opposed to old style contracts developed under the compulsory competitive tendering regime.

Enterprise also boasts blue-chip companies such as BT, Transco, United Utilities, Powergen and Thames Water among its clients.

The group yesterday reported turnover of #138.3m in the six months to June 30, with pre-tax profit 6pc higher at #6m.